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Scaled Agile SAFe-APM Exam Syllabus Topics:
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NEW QUESTION # 15
Which statement is true about designing a data strategy?
- A. It should be approached as a one-time project
- B. Data monetization vastly increases the short-term value of products
- C. It requires collaboration between Product Managers and their Customers
- D. It is best when architected in the analyzing state within the ART Kanban
Answer: C
Explanation:
Designing a data strategy is the process of defining the vision, goals, principles, and governance of data and analytics in an organization. A data strategy should align with the business strategy and enable the delivery of value from data and AI initiatives. Designing a data strategy requires collaboration between Product Managers and their Customers, as they are the ones who understand the needs, problems, and opportunities of the market and the users. Product Managers and Customers should work together to identify the data sources, use cases, metrics, and feedback loops that will inform the data strategy and drive the data-driven decision making.
Reference:
Design your data strategy in six steps | IBM
How to build and deliver an effective data strategy: part 1 - Microsoft UK Blog Crafting Your Data Strategy - data.org Designing Data Strategies - Development Gateway: An IREX Venture
NEW QUESTION # 16
A company that typically markets to small companies has a growth strategy to sell to larger organizations. The Product Manager is in charge of a new application and must recommend which of the following segments to address first.
Segment 1: Top 1,000 very large companies (over 25,000 employees); dominated by large Enterprise application vendors who sell the app as an add-on module but need to be better integrated into their other applications. Customer anecdotes indicate low satisfaction.
Segment 2: 5.8 million US-based small businesses (under 500 employees); tasks are often done in spreadsheets. Competitors are small privately-owned software companies offering desktop-based solutions. The company already has a good market share in this segment.
What should be the recommendation for the next 12 months?
- A. Choose segment 2
- B. Find another segment
- C. Choose both
- D. Choose segment 1
Answer: D
Explanation:
Segment 1 is the better choice for the next 12 months, because it aligns with the company's growth strategy to sell to larger organizations, and it offers a higher potential value and lower competitive intensity than segment 2. Segment 1 consists of very large companies that have a need for the new application, but are dissatisfied with the current solutions offered by the large enterprise application vendors. This indicates a market opportunity for the company to provide a better integrated and more satisfying solution that can meet the needs and expectations of these customers. Segment 2, on the other hand, consists of small businesses that are already well-served by the company and its competitors, and may not have a strong demand or willingness to pay for the new application. Therefore, segment 2 offers a lower value and higher competitive intensity than segment 1.
Reference:
Market Segmentation: Definition, Types, Benefits, & Best Practices: This article from Qualtrics XM provides an overview of market segmentation, and discusses the benefits and best practices of market segmentation for businesses. It also provides some examples and tips on how to segment markets effectively.
Market Segmentation: Definition, Example, Types, Benefits - Investopedia: This article from Investopedia explains the concept and purpose of market segmentation, and describes the four primary types of market segmentation: demographic, geographic, psychographic, and behavioral.
Market Segmentation: Definition, Criteria and Other Details: This article from Your Article Library provides a comprehensive guide on market segmentation, including its definition, criteria, process, levels, and bases. It also discusses the advantages and limitations of market segmentation.
NEW QUESTION # 17
The Product Owners (POs) on an ART held a brainstorming session to gather more detail on an upcoming Feature. They created many Stories but are still deciding which ones to do first because they seem necessary.
Which technique would help organize the Stories and understand which are critical to implementing the Feature?
- A. Must have/Should have/Could have/Will not have (MoSCoW)
- B. Kano analysis
- C. Story mapping
- D. Weighted Shortest Job First (WSJF)
Answer: C
Explanation:
Story mapping is a technique that helps product owners and teams visualize and prioritize user stories based on the user journey and the value they deliver. Story mapping involves creating a two-dimensional map of stories, where the horizontal axis represents the main activities or steps of the user journey, and the vertical axis represents the priority or importance of the stories. The stories are arranged in a hierarchy, where the top row contains the most essential stories that form the backbone of the feature, and the lower rows contain the more detailed or optional stories that enhance the feature. Story mapping helps to organize stories and understand which are critical to implementing the feature, as it shows the big picture of the user goals and needs, the dependencies and relationships among stories, and the minimum viable product (MVP) scope.
References:
* Story Mapping: This article from the Scaled Agile Framework explains the purpose, process, and benefits of story mapping, and provides an example of how it can be used in a SAFe context.
* User Story Mapping: Discover the Whole Story, Build the Right Product: This book by Jeff Patton, the creator of story mapping, provides a comprehensive guide on how to use story mapping to create better products and services that delight customers.
* How to Create a User Story Map: Step by Step Guide with Examples: This article from Miro provides a detailed guide on how to create a user story map, with examples and templates for different types of products and services.
NEW QUESTION # 18
What is one characteristic that is an essential part of market segmentation?
- A. Validating that the segment is valuable enough to be economically feasible
- B. Exploring competition within the segment
- C. Evaluating if segment members view the organization positively
- D. Determining if the organization already has strong sales within the segment
Answer: A
Explanation:
Market segmentation is the process of dividing a market into distinct groups of customers who have similar needs, preferences, or behaviors. Market segmentation helps enterprises identify and target the most valuable and profitable customer segments, design and deliver solutions that meet their needs, and optimize their marketing strategies and campaigns. However, market segmentation is not only based on quantitative factors, such as size, growth, and profitability, but also on qualitative factors, such as values, mission, and vision. A market segment should align with the enterprise's values and mission, which reflect its purpose, identity, and culture. A market segment that aligns with the enterprise's values and mission will help the enterprise achieve its strategic goals, create a positive brand image, and build trust and loyalty with customers.
One of the characteristics of effective market segmentation is that the segment should be valuable enough to be economically feasible. This means that the segment should have enough potential customers who are willing and able to pay for the products or services offered by the enterprise. The segment should also generate enough revenue and profit to cover the costs of marketing, production, and distribution. The segment should also have a positive impact on the enterprise's return on investment (ROI) and net present value (NPV). A segment that is not valuable enough to be economically feasible will not be sustainable or profitable for the enterprise.
Reference:
Customer Centricity - Scaled Agile Framework
Advanced Topic - SAFe for Marketing - Scaled Agile Framework
What is one consideration when evaluating the fit for a market segment?
5.4 Essential Factors in Effective Market Segmentation
NEW QUESTION # 19
Why is it important for every business to allocate funding to investment horizon 3?
- A. To create future products that can create new revenue streams
- B. To ensure necessary investment is allocated to retire an existing product
- C. To identify the Features in the users of the product like most
- D. To improve existing products so income exceeds costs
Answer: A
Explanation:
Investment horizon 3 is the longest-term horizon that focuses on exploring and developing breakthrough innovations that can create new markets and revenue streams for the business. It is important for every business to allocate funding to investment horizon 3, because it enables the business to anticipate and respond to the changing customer needs, technological trends, and competitive threats, and to secure its future growth and survival. Investment horizon 3 requires a high level of creativity, experimentation, and risk tolerance, but it can also generate a high level of return and differentiation.
References:
* Horizon Planning: This article from the Scaled Agile Framework explains the concept and purpose of horizon planning, and describes the four horizons and their characteristics, challenges, and best practices.
* SAFe's investment horizon model - A synopsis: This article from Medium provides a summary of the SAFe investment horizon model, and illustrates how it can help organizations allocate their resources and manage their portfolio.
* Enduring Ideas: The three horizons of growth | McKinsey: This article from McKinsey presents the original framework of the three horizons of growth, and discusses how it can help businesses balance their current and future opportunities and challenges.
NEW QUESTION # 20
Which is a good example of a pivot that would indicate that Customers want to pay in a different way?
- A. Customer segment pivot
- B. Customer problem pivot
- C. Feature pivot
- D. Value exchange pivot
Answer: D
Explanation:
A value exchange pivot is a type of pivot that changes the way customers pay for the product or service, or the way the business generates revenue from the product or service. A value exchange pivot would indicate that customers want to pay in a different way, because it reflects a change in the customer preferences, behavior, or expectations regarding the payment method, frequency, or amount. For example, a business may pivot from a one-time purchase model to a subscription model, or from a fixed-price model to a pay-per-use model, based on the customer feedback and data.
Reference:
Pivot: This article from the Scaled Agile Framework defines the concept and purpose of pivot, and how it helps to validate or invalidate the assumptions and hypotheses of a product or service using experiments and feedback.
The 10 Types of Startup Pivots: This article from Forbes provides an overview of the 10 types of startup pivots, and how they can help entrepreneurs adapt and innovate in response to the market and customer needs. It also provides some examples of successful pivots by well-known companies.
NEW QUESTION # 21
What research game is primarily used to better understand the priorities of Solution requirements?
- A. Buy a Feature
- B. Start Your Day
- C. Speed Boat
- D. Spider Web
Answer: A
Explanation:
Buy a Feature is a research game that is primarily used to better understand the priorities of Solution requirements. Buy a Feature is a collaborative prioritization technique that involves giving participants a fixed amount of virtual money and a list of features or requirements with different costs. The participants then have to decide which features or requirements they want to buy, either individually or in groups. The game reveals the preferences, trade-offs, and consensus of the participants, as well as the relative value and importance of each feature or requirement.
Reference:
Buy a Feature - Scaled Agile Framework
Buy a Feature - Innovation Games
What Innovation Game is primarily used to better understand the priorities of Solution requirements?
NEW QUESTION # 22
The business wants to avoid losing Customers. A new Feature to address that could be placed in which category?
- A. Retainment
- B. Operational efficiency
- C. New business
- D. Up-sell
Answer: A
Explanation:
Retainment is the category of a new feature that aims to keep existing customers loyal and satisfied with the product or service, and prevent them from switching to competitors or alternatives. Retainment features can include loyalty programs, referral incentives, customer feedback mechanisms, personalized offers, and improved customer service. Retainment features can help the business reduce customer churn, increase customer lifetime value, and enhance customer advocacy.
References:
* Feature Categories: This article from the Scaled Agile Framework explains the concept and purpose of feature categories, and how they can help product teams prioritize and communicate the value of features. It also describes the four main feature categories: new business, up-sell, operational efficiency, and retainment.
* How to Stop Losing Customers: 6 Proven Ways | Pressfarm: This article from Pressfarm provides some practical tips and examples of how to stop losing customers and increase customer retention, such as staying connected, offering excellent customer experience, and providing value-added services.
NEW QUESTION # 23
Who is the best stakeholder to collaborate with if a Product Manager wants to discuss an Enabler Feature for the upcoming PI?
- A. System/Solution Architects
- B. Agile Team
- C. Business Owners
- D. Epic Owners
Answer: A
Explanation:
An Enabler Feature is a type of feature that supports the development and delivery of future business features by extending the architectural runway, improving the infrastructure, or addressing compliance. An Enabler Feature is usually defined and prioritized by System/Solution Architects, who are responsible for designing and guiding the technical aspects of the solution. Therefore, the best stakeholder to collaborate with if a Product Manager wants to discuss an Enabler Feature for the upcoming PI is the System/Solution Architect, as they can provide the necessary technical expertise, guidance, and alignment.
Reference:
Enablers - Scaled Agile Framework
System and Solution Architect/Engineering - Scaled Agile Framework
PI Planning - Scaled Agile Framework
NEW QUESTION # 24
What statement is true about designing an application programming interface (API) strategy?
- A. APIs are best when architected in the analyzing state within the ART Kanban
- B. API design and development should leverage Design Thinking
- C. APIs can be modernized
- D. APIs should be approached as one-time projects
Answer: B
Explanation:
Design Thinking is a creative process that involves empathizing with customers, defining the problem, ideating possible solutions, prototyping, and testing. Design Thinking can help API design and development by ensuring that the APIs are user-centric, meet the needs and expectations of the customers, and deliver value to the business. Design Thinking can also help API design and development by fostering collaboration, experimentation, and feedback among the stakeholders, such as product managers, developers, and customers.
References:
* Design Thinking - Scaled Agile Framework
* How to Design an API - Application Programming Interface Best Practices
* Best Practices in API Design - Swagger
NEW QUESTION # 25
Which horizon describes the desired state as stable solutions that deliver high value with minimal new investment?
- A. Horizon 0
- B. Horizon 3
- C. Horizon 1
- D. Horizon 2
Answer: C
Explanation:
The horizon model is a framework that helps organizations balance their investments across different time horizons and types of innovation. According to the Scaled Agile Framework, there are four horizons: Horizon
0, Horizon 1, Horizon 2, and Horizon 31. Horizon 1 describes the desired state as stable solutions that deliver high value with minimal new investment. These are the core products or services that generate most of the current revenue and profit, and have a loyal customer base. Horizon 1 solutions require continuous improvement and optimization, but not significant new investment or disruption. Horizon 1 can be further divided into two sub-horizons: Investing and Extracting2.
References:
* Horizon Planning: This article from the Scaled Agile Framework explains the concept and purpose of horizon planning, and describes the four horizons and their characteristics, challenges, and best practices.
* SAFe's investment horizon model - A synopsis: This article from Medium provides a summary of the SAFe investment horizon model, and illustrates how it can help organizations allocate their resources and manage their portfolio.
NEW QUESTION # 26
What information does a Product Manager contribute during PI Planning?
- A. Definition of done for each Feature
- B. The exact sequence of work
- C. Sizing of Features requested
- D. Product Vision and Roadmap
Answer: D
Explanation:
According to the SAFe Agile Product Management APM (6.0) documents and learning resources, the Product Manager is responsible for defining and communicating the product vision and roadmap to the Agile Release Train (ART) during PI Planning. The product vision describes the future state of the product and the value it will deliver to the customers and the enterprise. The roadmap outlines the features and enablers that will realize the vision over time. The Product Manager also presents the top 10 features for the upcoming Program Increment (PI) and their priorities based on the Weighted Shortest Job First (WSJF) method.
Reference:
Agile Product Management - Scaled Agile Framework
Product and Solution Management - Scaled Agile Framework
PI Planning - Scaled Agile Framework
WSJF - Scaled Agile Framework
NEW QUESTION # 27
In which Roadmap Feature bucket would a Product Manager place an add-on Feature?
- A. New Business
- B. Retainment
- C. Horizon 1
- D. Up-sell
Answer: D
Explanation:
An up-sell feature is a feature that encourages customers to buy a more expensive or advanced version of a product or service, or to add additional products or services to their purchase. An up-sell feature can increase the revenue and profit per customer, and enhance the customer value proposition. An add-on feature is a type of up-sell feature that adds functionality or benefits to the existing product or service, and usually requires an extra payment or subscription. For example, a cloud storage service may offer an add-on feature of extra storage space or enhanced security for a higher fee.
Reference:
Feature Categories: This article from the Scaled Agile Framework explains the concept and purpose of feature categories, and how they can help product teams prioritize and communicate the value of features. It also describes the four main feature categories: new business, up-sell, operational efficiency, and retainment.
Product Roadmap: Examples, Types and Key Features: This article from AltexSoft provides a comprehensive guide on product roadmaps, including their key features, common types, and examples. It also provides some tips and best practices on roadmap creation and communication.
NEW QUESTION # 28
Qualitative research fuels innovation when designed to explore what?
- A. Feature adoption rates
- B. Ideas for improving Feature throughput a PI
- C. The context in which Customers use the product
- D. Feasibility of copying a competitive Feature
Answer: C
Explanation:
Qualitative research fuels innovation when it is designed to explore the context in which Customers use the product. Qualitative research is a type of research that collects and analyzes non-numerical data, such as words, images, or emotions. Qualitative research can help understand the needs, problems, and opportunities of the Customers, as well as their behaviors, attitudes, and preferences. By exploring the context in which Customers use the product, qualitative research can help identify the pain points, gaps, and unmet needs of the Customers, and generate ideas for improving the user experience and value proposition of the product. Qualitative research can also help validate the assumptions and hypotheses behind the product design, and test the prototypes and solutions with the Customers.
Reference:
Design Thinking - Scaled Agile Framework
Qualitative Data - Strengths and Limitations
New Research: Data And Culture Fuel Innovation - Forbes
NEW QUESTION # 29
Which item on the ART planning board might indicate a market window occurrence during a PI?
- A. Business value
- B. Dependencies
- C. Milestone
- D. Feature
Answer: C
Explanation:
A milestone is a specific point in time that marks a significant event or achievement for the ART or Solution Train. A milestone can indicate a market window occurrence during a PI, which is a limited period of time in which a product or service can be launched to gain acompetitive advantage or meet a customer demand. A milestone can help the ART or Solution Train align their delivery with the market window, and communicate their progress and readiness to the stakeholders.
References:
* Milestones: This article from the Scaled Agile Framework explains the concept and purpose of milestones, and describes the four types of milestones: Program Increment (PI), Fixed-Date, Learning, and Benefits.
* ART Planning Board: This article from the Scaled Agile Framework describes the role and structure of the ART Planning Board, and how it supports the PI Planning process and the Program Board.
* ART Planning Board - PI Planning: This article from Ivar Jacobson International provides practical advice and examples of how to use the ART Planning Board during the Management Review, and what to look for in terms of market windows, dependencies, risks, and objectives.
NEW QUESTION # 30
What research game is primarily used to better understand the priorities of Solution requirements?
- A. Buy a Feature
- B. Start Your Day
- C. Speed Boat
- D. Spider Web
Answer: A
Explanation:
Buy a Feature is a research game that is primarily used to better understand the priorities of Solution requirements. Buy a Feature is a collaborative prioritization technique that involves giving participants a fixed amount of virtual money and a list of features or requirements with different costs. The participants then have to decide which features or requirements they want to buy, either individually or in groups. The game reveals the preferences,trade-offs, and consensus of the participants, as well as the relative value and importance of each feature or requirement.
References:
* Buy a Feature - Scaled Agile Framework
* Buy a Feature - Innovation Games
* What Innovation Game is primarily used to better understand the priorities of Solution requirements?
NEW QUESTION # 31
When calculating Weighted Shortest Job First (WSJF), what action should be taken?
- A. Perform individual sizing by role in isolation, then synchronize the scoring later
- B. Execute one column at a time in full, then move on to the next
- C. Put each team in its own WSJF bucket
- D. Set your "ceiling" in Fibonacci and work down to the lowest-scoring item
Answer: D
Explanation:
According to the SAFe Agile Product Management APM (6.0) documents and learning resources, Weighted Shortest Job First (WSJF) is a prioritization model used to sequence work for maximum economic benefit. It is calculated by dividing the cost of delay by the job duration or size. To estimate the cost of delay, three factors are considered: user and business value, time criticality, and risk reduction or opportunity enablement. To estimate the job duration or size, a relative scale such as Fibonacci is used. The highest value in the Fibonacci scale is set as the "ceiling" and the lowest value is set as the "floor". The items are then scored by comparing them to the ceiling and the floor, and assigning them the closest Fibonacci number. The WSJF score is then obtained by dividing the cost of delay score by the job duration or size score. The items with the highest WSJF score are prioritized first.
Reference:
WSJF - Scaled Agile Framework
Weighted Shortest Job First (WSJF) | Definition and Overview - ProductPlan Weighted Shortest Job First - Open Practice Library
NEW QUESTION # 32
When estimating Feature effort in the analysis stage of the ART Kanban, which sizing standard is used?
- A. Estimated hours
- B. T-Shirt sizing
- C. Story points
- D. Estimated days
Answer: B
Explanation:
T-Shirt sizing is a sizing standard that is used to estimate Feature effort in the analysis stage of the ART Kanban. T-Shirt sizing is a relative estimation technique that uses predefined categories, such as XS, S, M, L, XL, to assign a size to a Feature based on its complexity, uncertainty, and dependencies. T-Shirt sizing is a quick and simple way to compare and prioritize Features without getting into too much detail or precision. T-Shirt sizing also helps to calculate the Weighted Shortest Job First (WSJF) value of a Feature, which is a prioritization method that considers the cost of delay and the job size.
Reference:
ART and Solution Train Backlogs - Scaled Agile Framework
ART Kanban - Scaled Agile Framework
New and Updated Kanban Articles provide more effective guidance for ...
Program and Solution Kanbans - Scaled Agile Framework
NEW QUESTION # 33
What is an example of a measurement that can help drive Value Stream innovation and improvements?
- A. Iteration velocity measured on a quarterly basis
- B. Average Customer acquisition costs
- C. Percentage of Customers activating the product
- D. Number of Customers added during the quarter
Answer: C
Explanation:
A measurement that can help drive Value Stream innovation and improvements is the percentage of Customers activating the product. This metric indicates how many Customers are actually using the product after acquiring it, and how well the product meets their needs and expectations. A high percentage of Customers activating the product means that the product delivers value and solves a problem for the Customers, and that the Value Stream is aligned with the Customer-centric mindset. A low percentage of Customers activating the product means that there is a gap between the product offering and the Customer demand, and that the Value Stream needs to innovate and improve the product design, delivery, and marketing.
References:
* Value Stream KPIs - Scaled Agile Framework
* The Four Most Useful Value Stream Metrics in Software
* What is an example of a measurement that can be used to help drive ...
NEW QUESTION # 34
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